In the eyes of the IRS, income is income, and it must be taxed.

For business owners, the definition of income goes a little deeper in that there is business income and personal income, and they both don’t necessarily have to be taxed. By allowing businesses to deduct many expenses associated with starting and running a business, the Internal Revenue Code provides at least five tax-advantaged ways to take more income from your business.

In the most basic terms, the more opportunities there are to legally deduct business expenses, the less business income must be reported. The net result is that the business owner can take more income from the business. Some of that extra income may come in the form of a nicer car to drive or a business trip that morphs into a pleasure getaway. Still, business owners can reap more economic benefits from their businesses when they take full advantage of IRS-sanctioned tax advantages.

How Deductions Translate into Income

The simple formula is this: As a taxpayer, a business owner pays income taxes on personal income derived from the business. The less business income that is reported, the less business owners have to pay in taxes, which means they keep more money. Considering all taxing entities-the fed, the state, and Social Security-business owners can quickly find themselves in a 50% tax bracket. Therefore, each dollar deducted as a business expense saves 50 cents in taxes.

Here are 5 Tax Advantage Ways to Take Income from Your Business:

Section 179 Deduction

With Section 179 expensing, you can now expense the entire cost of most new equipment up to $1 million of property placed in service by December 31, 2023. The deduction is phased out dollar-for-dollar for purchases that exceed $2.5 million, phasing out entirely for purchases over $3.5 million. The new law now includes the expensing of certain improvements to the interior of your business property. Adding a new roof or HVAC, fire protection, alarm, or security systems also qualified for the deduction.

The rules for Section 179 expensing can be complicated, but well worth the effort if you have plans to purchase business equipment sometime in the future. So, discussing your options with your tax advisor would be essential.

CODB Expense Deductions

All or a part of expenses associated with the cost of doing business can be deductible.

Your vehicle can be paid for, in large part, through the deductions generated by its use in the business. If you like to travel, a good portion of your trip is a write-off if its primary purpose is related to your business.

Eliminate Excess Inventory

If you still have products taking up shelf space at the end of the year, it is probably costing you more money than if you just gave it away. And, in doing so, you can take a tax deduction on its gifted value while benefiting a charity.

Hire Your Kids

If you have children, you can transform their allowance and college savings contributions into a business deduction, instantly putting more money in your pocket. As long as your business is not a corporation, you can hire your kids under 18 and deduct their salary as an expense.

You are not required to pay Social Security tax on their income, and, depending on how much total income they earn, they may not owe any income taxes.

Any one of these strategies could result in hundreds or thousands of dollars in tax savings. Used collectively, a business owner could increase take home income substantially. Every tax-saving strategy involves many elements and implications that a business owner should consider along with a qualified tax professional.